Health & Medical Insurance in California
The provisions of the Patient Protection and Affordable Care Act (PPACA), including healthcare exchanges and Medicaid expansion, have greatly increased the number of people with private health insurance in California over the past five years. Consequently, the Health and Medical insurance industry in California has yielded significant revenue growth over the five years to 2017, further boosted by an increase in demand for healthcare services. However, this has also hindered industry profit. When people use their health insurance, insurers must pay healthcare providers for their services, increasing benefit expenditure paid out by operators. Over the next five years, industry revenue is expected to grow, though at a significantly slower pace, as the initial surge of new individuals with health insurance spurred by the PPACA was the driving force behind the industry's rapid growth over the past five years.
This industry includes businesses that focus mostly on directly underwriting insurance policies relating to life, health, accident and medical risks. Underwriting insurance policies involves assuming risks and assigning premiums. Businesses within this industry generate revenue from the specific activity of insurance underwriting as well as through investing premiums. Investment revenue comprises income generated from investments as well as any realized gains or losses from asset sales.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.